Tags: Bloomberg Article

This is a must read article from Bloomberg. So the banksters steal billions (if not trillions) from the American economy and then they spit out a couple of million to desperate charities at black tie events in order to feel good about themselves. Robot-man himself, John Thain (I remain unconvinced that he is human), then comes out and says the following: “The demonization of Wall Street and bankers is very much a function of the press and of Washington, and not much more broadly held.” Really?! Thanks for the memo Johnny. Oh and the best part…his three children have apparently followed him into finance. I need a shower.

Key Quotes:Dimon was named executive of the year by the University of Rochester’s Simon Graduate School of Business at its May 3 conference, “Economic Action and the Management of Risk.” The honor is given to a leader who “demonstrates a deep respect for our nation’s fiscal health,” according to the school’s website.

A week later, Dimon, 56, disclosed a $2 billion trading loss in a division that helps manage the firm’s risk.

“In a difficult situation you find out what people are made of, who runs for help and who runs away, who takes responsibility and who scapegoats others, who you can trust and who makes it all about them,” Dimon said, according to a transcript of his remarks. “To all the active military members and veterans in the room: I’d go into the foxhole with any of you, and I hope I wouldn’t let you down.”

Last year the bank agreed to pay $56 million to settle claims that it overcharged soldiers on their mortgages and improperly seized the homes of active-duty military personnel.Dimon said then that he and the bank “deeply apologize.”

Jeffrey Peek, Thain’s predecessor at CIT and its CEO when the company filed for bankruptcy in 2009, was honored with his wife at a February gala for the Citizens Committee for New York City, which funds volunteer-led neighborhood groups.

School children sang “Bridge Over Troubled Water” to a crowd that included Paul Simon, the song’s writer. Peek oversaw CIT’s expansion into subprime mortgages, leaving the firm after it emerged from bankruptcy protection. He is now vice chairman of investment banking at Barclays Plc.

My Take: This is a very important article from Bloomberg. Paul Volcker, who is known for crushing inflation in the early 1980’s by spiking interest rates into the double digits, is seen in many circles as perhaps the best U.S. Central Banker of the modern era. As a guy who was willing to take the hard steps to avoid a dollar collapse and restore America back on a path to prosperity. That is the myth. Reality is a lot different. Besides the fact that his actions merely created a temporary respite on the terminal path of the fiat dollar, all that happened from the early 80’s until now was the blowing up of the biggest credit and derivatives bubble in human history. A ponzi scheme of counterfeit money so monstrous that nothing short of a total reset of the global monetary and financial system globally will suffice to end this nightmare. The fact that the “problems” keep resurfacing is simply a function of our failure to reset the system. Until that happens, nothing will ever get better on a consistent basis.

In any event, the title of this article makes Volcker sound like he is really in favor of a system overhaul, yet if you read it you realize that is not the case. He is merely calling for tweaks here and there and seems to even be calling for MORE power in the hands of bureaucrats and Central Bankers.

For example, when talking about the global trade imbalances that have been built up he offers as a solution: “Possibilities for forcing countries to correct imbalances may include stronger surveillance by the International Monetary Fund or financial penalties and incentives, Volcker said. He also urged the study of a multiple-currency reserve system.”

I mean, this guy has some nerve. More power to the IMF? This proves to me Volcker is a total globalist who wants to march toward the fiat feudalism of a one-world fiat currency like the SDR. The reason I say this is because he knows full well that using gold naturally prevents all of the trade imbalances from ever occurring. I am not talking about a Bretton Woods phony “in theory gold standard,” I am talking about if nations used gold for international trade. If we were under such a system the trade imbalances, credit bubble and derivatives nightmare could never have ever gotten to where it is. Amazingly, Volcker’s brilliant solution is to give more power to those that got us into this mess, hoping they can make the right decisions this time. That represents a march toward more Central Planning as well as feudalism for the masses and this clown wants more of it as a solution!